GDP stronger than post-referendum predictions

The initial estimate of GDP for the final quarter of 2017 showed quarterly growth picking up to 0.5%. GDP growth for the year as a whole was 1.8%, very close to the rate for 2016.

While annual growth is still somewhat below the long-term average for the UK, it is notably stronger than predictions made in the immediate aftermath of the Brexit referendum.

Manufacturing output has shown a strong recovery, however it is the dominant services sector which remains the main driver of growth in the UK economy.

The initial estimate of GDP for the final quarter of 2017 showed quarterly growth picking up to 0.5%. GDP growth for the year as a whole was 1.8%, very close to the rate for 2016.

While annual growth is still somewhat below the long-term average for the UK, it is notably stronger than predictions made in the immediate aftermath of the Brexit referendum.

Manufacturing output has shown a strong recovery, however it is the dominant services sector which remains the main driver of growth in the UK economy.

The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. The views expressed are the author’s own and do not constitute investment advice.